I would think Costco has the advantage. AMEX probably needs them more than Costco needs AMEX. I don't think Costco members would care too much unless Costco did something like only accept a Capital One card and/or they lose getting the current cash back benefits currently provided by AMEX.

Yes, this sucks. However, from my POV, if Costco can continue to provide 3% cash back from gas purchases and an annual purchase rebate using any credit card, that's fine with me. And, as @tondoleo points out, 14 months is enough time for some good things to happen.

I have the Costco Amex card which is a fake Amex Platinum with low rewards (IMHO). It's actually one of my older cards but I don't have a major problem on this change of events unless....wait for it....Costco goes exclusive with another card company I don't like (I'm talking to you Cap One and Discover). If they go exclusive Cap One or Discover I will go across the street (literally for me) to Sam's club even though I like Costco much better.

I have the Costco Amex card which is a fake Amex Platinum with low rewards (IMHO). It's actually one of my older cards but I don't have a major problem on this change of events unless....wait for it....Costco goes exclusive with another card company I don't like (I'm talking to you Cap One and Discover). If they go exclusive Cap One or Discover I will go across the street (literally for me) to Sam's club even though I like Costco much better.

Click to expand...

Same here but I would just buy Costco cash cards online (free standard shipping) with my favorite rewards card.

I have the Costco Amex card which is a fake Amex Platinum with low rewards (IMHO). It's actually one of my older cards but I don't have a major problem on this change of events unless....wait for it....Costco goes exclusive with another card company I don't like (I'm talking to you Cap One and Discover). If they go exclusive Cap One or Discover I will go across the street (literally for me) to Sam's club even though I like Costco much better.

Click to expand...

I would think it's highly unlikely that they will restrict their customers to either a particular issuer of Visa/MC or switch to Discover. I wonder if it is even "legal" for merchants to limit acceptance to a particular VISA or MC issuer or for credit card issuers (like Cap One) to enter such agreements for one of their VISA/MC-branded cards.

I would think it's highly unlikely that they will restrict their customers to either a particular issuer of Visa/MC or switch to Discover. I wonder if it is even "legal" for merchants to limit acceptance to a particular VISA or MC issuer or for credit card issuers (like Cap One) to enter such agreements for one of their VISA/MC-branded cards.

Click to expand...

If they can't, then they could offer some incentives for using the co-branded card. Maybe more cash back for Costco purchases.

Amex lately has been renewing a number of its partnership agreements, she noted. It struck a new deal with Delta Air Lines Inc.DAL -0.76%, and is in talks with JetBlue Airways Corp.JBLU +0.42% Costco was next on the list. But the talks never went anywhere productive. “It just kind of deteriorated,” she said. “They couldn’t come to agreement on terms.” American Express, she said, felt that the things Costco wantedjust didn’t make economic sense for it.

Moreover, she said, “the writing was on the wall,” after an agreement between Amex and Costco in Canada fell apart several months ago. So the U.S. partnership crumbling was just the other shoe dropping. The question now is how does American Express replace a partnership that represented one out of every 10 cards it issued, and where does Costco takes its business next.

“Our intention was never to launch a website, our intention was to build a global brand for frequent flyers.”

content + community + technology + social

InsideFlyer was created by travelers, for travelers. Here you can discover and share your experiences related to travel and frequent flyer programs with business travelers, leisure travelers, infrequent flyers and road warriors alike.

InsideFlyer is a privately funded venture based in Colorado Springs, CO (affectionally—the House of Miles). We’re a small diverse group of experienced frequent flyer experts, travel community builders, technologists, and friends of the flyer who want to help you learn to be an expert traveler. We believe that learning about frequent flyer miles should be as fun as travel itself.